Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses
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Question:
Supply Club, Incorporated, sells a variety of paper products, office supplies, and other products used by businesses and individual consumers. During July it started a loyalty program through which qualifying customers can accumulate points and redeem those points for discounts on future purchases. Redemption of a loyalty point reduces the price of one dollar of future purchases by equal to cents Customers earn one loyalty point for each dollar of goods purchased, but do not earn additional loyalty points for purchases that are made by redeeming loyalty points. Based on past experience, Supply Club estimates a probability that any point issued will be redeemed for the discount. During July the company redeemed points and sold additional product of $ so it recorded of revenue of $ The aggregate standalone selling price of the purchased products is $ Seventy percent of sales were cash sales, and the remainder were credit sales.
Required:
& Prepare Supply Clubs journal entry to record July and August sales. During August, customers redeem loyalty points on $ of merchandise. Sixtyfive percent of those sales were for cash, and the remainder were credit sales.
Note: Do not round intermediate calculations. If no entry is required for a transactionevent select No journal entry required" in the first account field.
Related Book For
Intermediate Accounting
ISBN: 978-1259548185
8th edition
Authors: David Spiceland, James Sepe, Mark Nelson, Wayne Thomas
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